The Roman Empire reminds us that confidence in the currency is crucial

Real Clear Markets/Rob Smith and George Maher

Repost from 10-21-2021

“If someone is worried that the $1,000 they have stashed away in an account for a rainy day will not be worth as much as in three months, they will go out and spend that money. Increased spending will drive prices up further making existing savings worth less. Just as in the Weimar Republic or Venezuela today – despite the latter’s efforts to improve the situation by introducing official cryptocurrencies – money will become worthless.”

USAGOLD note: When citizen-investors lose faith in money, we will add, they often turn to gold. They did so in ancient Rome during the centuries-long debasement of the silver denarius, and they are doing it now to hedge the debasement of paper currencies.


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March 2020

Hedging the decline and fall of a currency

The baseline case for gold hasn’t changed much in 1700 years

“We sometimes forget that inflation is a process rather than an event. One of the better-known examples of that axiom is the nearly two centuries-long debasement of Rome’s silver denarius – an inflationary episode Jack Whyte, a writer of historical fiction, skillfully addresses in his latest novel, The Burning Stone.” [MORE]

graphic image showing decline of the denarius over 200 y ears

Graphic illustration courtesy of VisualCapitalist.com • • • Click to enlarge

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